In Depth: Will 2025 Herald an IPO Revival in China?

Venture capital firms are cautiously optimistic they’ll be able to cash out of their investments as the stock market warms up again and regulators encourage alternative exit channels

IPOs remain the exit of choice for PE/VC investors — a recent survey of midsize to large firms by an industry association found that more than 98% of respondents prefer the route. Photo: AI generated

Private equity (PE) and venture capital (VC) funds in China had another gloomy year in 2024, but many in the industry are hoping that a revival is on the cards in the wake of renewed enthusiasm in the domestic stock market after a string of supportive measures from the government.

The benchmark Shanghai Composite Index has risen more than 12% since the government released a slew of stimulus measures starting Sept. 24, while the Shenzhen Component Index has jumped more than 17%.

PE/VC firms are waiting to see whether the fervor in the secondary market will spill over into the primary market where IPO candidates raise funds and early-stage shareholders exit their investments.